As part of the Justice Department’s compensation fund deal, officials vowed not to pursue any matters, including those involving President Trump’s tax returns, that are pending.
The Justice Department on Tuesday expanded the agreement it reached this week with President Trump to resolve his extraordinary lawsuit against the Internal Revenue Service to include a provision that would bar the agency from pursuing tax claims against the president, his family or his businesses.
In a one-page document signed by acting Attorney General Todd Blanche and quietly posted on the department’s website, officials vowed not to pursue any matters, including those involving Mr. Trump’s tax returns, that are currently pending.
The new provision was released just one day after Mr. Trump agreed to drop his suit in exchange for the creation of a $1.8 billion compensation fund for people he believes were wronged by federal investigations or prosecutions. The fund drew repeated criticism from Democrats when Mr. Blanche appeared before a Senate Appropriations subcommittee for a hearing on Tuesday morning.
Summary
The article reports that the Justice Department quietly added a major new provision to its settlement agreement with President Trump: the Internal Revenue Service will no longer pursue pending tax matters involving Trump, his family, or his businesses. That appears to include ongoing audits of Trump’s tax returns.
The agreement was signed by acting Attorney General Todd Blanche and posted on the Justice Department’s website one day after Trump agreed to drop his $10 billion lawsuit against the IRS. In exchange, the administration is creating a $1.8 billion “anti-weaponization” compensation fund for people Trump says were unfairly targeted by federal investigations.
Trump had sued the IRS earlier this year after leaks of his tax records during his first term were provided to reporters at The New York Times and ProPublica. Trump and his family argued the IRS failed to prevent the disclosure.
The new audit-protection provision is controversial because federal law generally prohibits political officials from directing the IRS to open or stop specific audits. However, the article notes there may be an exception involving the attorney general. Critics argue that even if Trump and his family do not directly receive money from the compensation fund, avoiding large tax liabilities could still provide enormous financial benefit. The article notes that one prior IRS audit reportedly carried potential exposure of more than $100 million for Trump.
The piece also highlights broader concerns about politicization of federal institutions. Democrats criticized the deal heavily during Senate hearings, and the Treasury Department’s top lawyer, Brian Morrissey, resigned shortly after the settlement announcement.
